Equity Release Calculator

How Much Equity Can You Unlock?

Before you continue reading, why not try our FREE equity release calculator and discover how much value is tied into your property?

Perhaps you have the key to your retirement fortune without even knowing it!

All you need to do is provide your property value, age, and a few small details, and we’ll send you your results.

It’s that easy!

 

Equity Release Calculator

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Equity release may seem like a complicated process, but with the right assistance, you’ll be supported throughout your journey and you can expect it to be stress-free.

Fortunately, you’ve come to the right place for a perfect introduction.

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EQUITY RELEASE SEARCH

What Can We Help You Find?
What’s Equity Release?
How Much Cash Can You Unlock With Equity Release?

Equity release is a financial product that allows senior homeowners to unlock capital from their property to fund their senior years.

Contributors: Nicola Date, Katherine Read. Edited by Rachel Wait & Reviewed by Francis Hui

Learn more about equity release:

How Does Equity Release Work?

Equity release works by allowing you to take out a loan against your property.

You have the option to receive the funds as one tax-free lump sum, regular lump sum payments, or monthly payments.

Equity release is a way for you to release funds while remaining in your precious home.

The loan is repayable once you pass on or decide to move into a permanent care facility.

Learn more about equity release:

Do I Meet the Qualification Criteria?

You meet the qualification criteria if:

  • You own a home in the UK.
  • You are aged 55 or above.
  • Your property is in a reasonable condition.
  • Your property is worth more than £70,000.
  • The property is your primary residence.
  • You’ve paid off or are close to paying off any existing mortgages for the property.

Learn more about equity release qualification criteria:

Equity Release With an Existing Mortgage

Do I Meet the Qualification Criteria?

You meet the qualification criteria if:

  • You own a home in the UK.
  • You are aged 55 or above.
  • Your property is in a reasonable condition.
  • Your property is worth more than £70,000.
  • The property is your primary residence.
  • You’ve paid off or are close to paying off any existing mortgages for the property.

Learn more about equity release qualification criteria:

Equity Release With an Existing Mortgage

Are There Different Types of Equity Release?

Yes, there are 2 different types of mortgages; lifetime mortgages and home reversion schemes.

A lifetime mortgage encompasses a range of products to suit your needs and lifestyle.

These include drawdown lifetime mortgages, lump sum plans, and enhanced lifetime mortgages.

A home reversion scheme works by selling a portion of or your entire home, while occupying it rent-free.

Learn more about the types of equity release:

What's the Process?

The process includes getting advice, applying for equity release, valuation, and the final offer from the provider for you to consider.

You can start by contacting a credible financial advisor, one that’s well-versed in equity release products.

They will guide and assist you based on your needs and resources, as no 2 situations are ever the same.

The application and implementation process can take anything from 1 to 2 months to complete.

Learn more about the equity release process:

Do I Need Advice?

Yes, you do need advice when considering equity release.

Although the demand for equity release is increasing, you need to be sure that it’s the right option for you.

We recommend enlisting the help of a financial advisor when making such an important financial decision.

Learn more about equity release advice:

What Does It Cost?

The costs of equity release depend on the provider you decide on.

Equity release products include an application fee, solicitor’s fees, legal fees, advice fees, completion fees, and interest rates.

Learn more about the various equity release costs:

What Are the Uses?

The uses of equity release are many, such as:

  • Home improvements
  • Vacations
  • Debt or other
  • mortgage repayments
  • Covering monthly expenses
  • Purchasing other properties
  • Family needs

The funds you unlock can be used on whatever you wish, provided that it’s legal.

We recommend that you use it smartly and consult your financial advisor for guidance if necessary

Learn more about equity release uses:

Is It Safe?

Yes, it’s safe.

Equity release is regulated by the Financial Conduct Authority (FCA) and provided under the guidance of the Equity Release Council (ERC).

Jointly, these 2 bodies work to ensure that clients are treated fairly, and that the services provided are safe.

Learn more about releasing equity safely:

Who Offers Equity Release?

Equity release is offered by various financial service providers across the UK.

These include financial institutions, banks, mutual funds, and building societies.

To protect your interests, we recommend choosing a provider that’s a member of the ERC and is regulated by the FCA.

Learn more about the top equity release providers:

Are There Companies to Avoid?

Yes, there are companies to avoid when considering equity release.

These include companies that:

  • Aren’t regulated by the FCA.
  • Aren’t a member of the ERC.
  • Don’t have an early repayment option.
  • Offer uncapped variable interest rates.
  • Don’t offer a ‘no negative equity guarantee.’
  • Have excessively high early repayment charges
  • Easily approve your application without assessing your circumstances.
  • Don’t give you the option to move to another property, if it’s on the cards for you.

Learn more about which companies to avoid:

Where Can I Find the Best Deals?

You can find the best deals by turning to an expert in the field.

When you reach out to a whole of market advisor, they will assess the market to find the most suitable deals for you to choose from.

Learn more about where to find the best equity release deals:

How Much Equity Can I Unlock?

How much equity you can unlock varies per person.

It’s dependent on factors such as your age, property value, and your health condition in some cases.

Generally, you can access 20% to 60% of the market value of your property.

For a more accurate estimate, you can use an equity release calculator or consult with an advisor on how much you qualify for.

Learn more about how much equity you can unlock from your home:

What Are My Alternatives?

Your alternatives to equity release include:

  • Downsizing
  • Remortgaging
  • Additional income
  • Other credit facilities
  • Savings that you might have
  • State benefits – if you’re eligible
  • Retirement interest-only (RIO) mortgages

Learn more about equity release alternatives:

10 Most Common Equity Release Questions

Is Equity Release Regulated?

Yes, equity release is regulated by the FCA and guided by the ECR to ensure client safety.

Can I Still Take Out an Equity Release Plan if I Have an Outstanding Mortgage?

Yes, you can still take out an equity release plan if you have an outstanding mortgage.

We recommend that you use the funds you unlock to settle the existing mortgage, as you can only have 1 mortgage on a property.

Will I Still Own My House With Equity Release?

Yes, you will still own your house if you choose a lifetime mortgage.

However, with a home reversion scheme, your house will be sold.

How Will Releasing Equity Affect My Family?

Releasing equity will affect your family because of the reduced inheritance when your property is sold.

Can I Still Leave an Inheritance with Equity Release?

Yes, you can still leave an inheritance with equity release.

There are plans that offer inheritance protection, allowing some property wealth to be set aside for your heirs.

Alternatively, you can leave an early inheritance for your heirs by gifting them with the funds you unlock.

Will My Entitlement to Means-Tested Benefits Be Affected?

Yes, your entitlement to means-tested benefits will be affected by equity release.

This is why we recommend that you contact a financial advisor when making this big decision.

Will I Lose My Home?

No, you won’t lose your home.

Equity release allows you to remain in your property rent-free.
Can I Change My Equity Release Plan?

Yes, you can change your equity release plan to find a more suitable deal for you.

Can I Move Home With Equity Release?

Yes, you can move home with equity release if your provider approves.

Can You Pay Back Equity Release Early?

Yes, you can pay back equity release early.

However, an early repayment charge may be applicable.

The charge differs per provider and can be up to 5% of the initial loan amount.

What Happens to My Equity Release Plan if I Enter Long-Term Care?

When you enter long-term care, your equity release plan will cease.

Your property will be sold and the proceeds will be used to settle the loan amount.

The ‘no negative equity guarantee’ ensures that neither you or your beneficiaries will be liable for any surplus debt.

Although, you or your beneficiaries will receive any remaining proceeds from the sale once the loan has been settled.